Although Spain’s economy was seen as a miracle during the most recent expansive
phase (for its labour market outcomes in terms of job growth, among other things), the
economy’s development during those years suffered from severe problems that
deserve attention. This became more relevant in a context like the current one, where
there is no consensus around which economic policies might lead the country back
onto a stable growth path. Using a systemic approach in which we analyse the growth
model, the role of Spain in the European division of labour, the financial sector, the
labour market, the public sector, and the distribution of income, we contend that, in
contrast with several narratives concerning the crisis in Spain: i) the 'living-beyondour-means' discourse is not true; and ii) certain political economic aspects, usually
missing in those narratives, are essential to understanding the recent evolution of
Spain.
